Arpita Mukherjee Ramneet Goswami January 2009 - icrier
Arpita Mukherjee Ramneet Goswami January 2009 - icrier
Arpita Mukherjee Ramneet Goswami January 2009 - icrier
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the automatic route, while the same is allowed for natural gas or LNG pipelines with the<br />
approval of the FIPB.<br />
In the renewable energy sector, up to 74 per cent foreign equity is allowed through a<br />
joint venture with Indian partners for financial and/or technical collaboration through the<br />
automatic route and 100 per cent foreign investment is allowed with the approval of the FIPB.<br />
Foreign investors can also set up a liaison office in India, and the government is encouraging<br />
foreign investors to set up renewable energy-based electricity generation projects on a buildown-and-operate<br />
basis.<br />
In the electricity sector, 100 per cent FDI is allowed in generation, transmission,<br />
distribution and electricity trading subject to the provisions of the Electricity Act, 2003.<br />
In the nuclear energy sector, 74 per cent FDI is allowed for mining and mineral<br />
separation (through FIPB approval and subject to guidelines issued by the DAE), value<br />
addition and integrated projects (through joint ventures with central/state PSUs in which<br />
equity holding of at least one PSU is not less than 26 per cent). In exceptional cases, FDI<br />
beyond 74 per cent is permitted subject to clearance by the Atomic Energy Commission<br />
before FIPB approval.<br />
The FDI regime by sub-sectors is given below.<br />
Table 3.2.1: FDI Regime across different Energy Services<br />
W/120 CPC<br />
No.<br />
Description FDI Regime<br />
1.A.e 8672 Engineering services No cap and entry through automatic<br />
route<br />
1.A.f 8673 Integrated engineering services No cap and entry through automatic<br />
route<br />
1.C.a 85103 Research and experimental No cap and entry through automatic<br />
development services on natural route<br />
sciences and engineering and<br />
technology for casting, metal,<br />
machinery, electricity,<br />
communications, vessels, aircraft,<br />
civil engineering, construction,<br />
1.F.c 86509<br />
information, etc.<br />
Management consulting services No cap and entry through automatic<br />
route<br />
1.F.d 86601 Services related to management No cap and entry through automatic<br />
consulting<br />
route<br />
1.F.e 8676 Technical testing and analysis No cap and entry through automatic<br />
(partial) services<br />
route<br />
1.F.h 883 Services incidental to mining No cap and entry through automatic<br />
route<br />
5115 Site preparation work for mining No cap and entry through automatic<br />
route<br />
1.F.j 887 Services incidental to energy No cap and entry through automatic<br />
distribution<br />
route<br />
35
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